What is IOTA (IOTA)?
IOTA is an open and feeless data and value transfer protocol.
The Tangle is the proprietary technology that powers IOTA. In contrast to conventional blockchains, Tangle complete removes blocks while retaining their ability to execute secure transactions. This means several things - no blockchain means no miners, and no miners means no fees.
Consensus Mechanism and DAGs
The Tangle actually refers to a data structure called ‘Directed Acyclic Graphs’ - which were created specifically for IOTA. In simplified terms, The Tangle is composed of interconnected nodes that hold all data relating to transactions.
Instead of having a Proof-of-Work blockchain where miners are required to form a consensus, the Tangle requires network participants to confirm two other transactions in order to have their own transaction confirmed. This has the benefit of complete decentralisation, and a self-regulating network.
IOTA has various partnerships with the likes of Microsoft, Volkswagon, Bosch, Linux, and Fujitsu to achieve or explore various outcomes only possible with IOTA’s unique characteristics.
As a key vote of confidence, IOTA has partnered with the city of Taipei to test-drive its use in empowering smart cities. Digital ID cards have been created within the IOTA ecosystem in addition to integrating IOTA into air quality and pollution monitoring services.